With interest rates at record lows in Melbourne, the mortgage broker rates have a good chance of rising over the next 12 months. Historically interest rates on home loans are part of a cycle of undulating rates depending on the economic cycle. Mortgage Brokers Melbourne are advising borrowers to lock in a fixed interest rate. Fixed rates are 4.0% for three years. This can be compared to the variable rate of 4.35% for many banks.
Using the services of a mortgage broker melbourne can help you manage the effect of an interest rate rise. One strategy is to maintain the mortgage payments at the same level even when interest rates rise. That will build a buffer in the event interest rates on home loans rise. In fact increases in rates have already occurred in the mortgage market due to capital adequacy requirements being increased by the banks.
The four main factors banks use when assessing loan applications are income, assets, existing commitments and security of income. All factors are important in deciding whether a borrower is creditworthy for the level of loan they require.
Mortgage broker 247 is a leading mortgage broker in Melbourne and writes over 100 loans per day for its clients. The nest thing a broker can do is shop around for the lowest possible interest rate and terms without exit fees. Banks have a habit of increasing rates when they can.